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Review the following situation: Transworld Consortium Corp. is trying to identify its optimal capital structure. Transworld Consortium Corp. has gathered the following financial information to

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Review the following situation: Transworld Consortium Corp. is trying to identify its optimal capital structure. Transworld Consortium Corp. has gathered the following financial information to help with the analysis. Debt Ratio (%) Equity Ratio (%) WACC (%) 9.71 9.55 ra% 6.02 6.75 7.15 7.55 8.24 ,% 9.40 9.750 10.60 11.30 12.80 10.02 10.78 11.45 Which capital structure shown in the preceding table is Transworld Consortium Corp.'s optimal capital structure? O Debt ratio 60%; equity ratio 40% O Debt ratio = 50%, equity ratio -50% O Debt ratio = 30%, equity ratio -70% O Debt ratio = 40%; equity ratio 60% O Debt ratio = 70%; equity ratio = 30% Axis Chemical Co. has found that its expected EPS is maximized at a debt ratio of 45%. Does this mean that Axis Chemical Co.'s optimal capital structure calls for 45% debt? Yes O No

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